In this exclusive piece for IFA Magazine, Warren Bleechmore, Principal Consultant at Finova, offers pivotal insights into how international markets can learn from the UK’s equity release success story.
The UK’s equity release market has undergone significant change over the past decade, evolving from a niche offering with limited uptake to a mature sector that leads the way in consumer protection, product design, and technology adoption. In the last year alone, the market has seen a 32% lending increase as more homeowners seek to unlock wealth from their homes to support their retirement needs.
As demographic shifts and economic pressures continue to drive global interest in later life lending, the UK’s experience offers timely lessons for international markets looking to revamp their own propositions. For advisers and institutions outside the UK, now is a pivotal moment to look closely at how the UK got here and what aspects of its success can be replicated. Here’s what global markets can learn and apply right now.
- Trust built on standards
One of the UK’s defining achievements is the establishment of industry-wide standards led by the Equity Release Council (ERC). These standards put consumer protection, transparency, and long-term sustainability front and centre. For example, all ERC-approved products guarantee that borrowers can remain in their home for life and will never owe more than the property’s value (a “no negative equity” guarantee). The principles have reshaped perceptions of equity release from a “last resort” option to a mainstream financial planning tool.
For international financial advisers and product designers, the takeaway is clear. A robust code of conduct and standardised safeguards create the foundation for consumer trust. At a time when older consumers are more financially empowered but also more careful with their money, adopting a similar framework is not just good practice, it’s essential to earn their trust and ensure the market can grow.
- Regulatory collaboration: Building confidence from the top down
A key element of the UK’s equity release sector is the close alignment with regulatory bodies such as the Financial Conduct Authority (FCA). This regulatory ecosystem has enabled responsible innovation, giving consumers confidence that equity release products are being offered under rigorous oversight. The FCA, for example, plays a key role in monitoring standards and supporting practices that protect consumers while encouraging innovation.
International markets can learn from the UK’s regulatory framework by proactively engaging their own regulatory bodies early. Australia’s regulator, the Australian Securities and Investments Commission (ASIC), operates in a similar fashion. It actively reviews and updates rules for reverse mortgages to protect consumers and encourage industry growth. As such, by engaging early and consistently with regulators, the market builds trust, stability, and long-term sustainability.
- Product evolution: Flexibility is no longer just an option
UK providers have moved beyond the one-size-fits-all model, offering flexible lifetime mortgages, voluntary repayment options, and drawdown facilities tailored to diverse borrower profiles. Many large lenders now offer drawdown plans, allowing borrowers to access their housing wealth in stages rather than as a lump sum, helping to reduce the interest that accrues over time. Others have introduced voluntary repayment features that let customers repay a portion of their loan each year without incurring early repayment charges, giving them more control over the overall cost. These innovations recognise that later-life borrowing needs are not uniform and neither should the solutions be.
Markets that cling to rigid product structures risk being left behind. And as global demand for equity release grows, flexibility will be key. Features like interest servicing options, downsizing protection, and penalty-free early repayments are fast becoming must-haves for today’s customers.
- Advisers are central to the journey
One of the UK’s quieter success stories is the collaborative network across advisers, legal professionals, lenders, and tech providers. This joined-up approach ensures a smooth and supportive journey for clients, which is vital when dealing with such emotionally and financially significant decisions.
For international advisers, now is the time to build local ecosystems that mirror this approach. Advisers should play a central role, acting not just as intermediaries but as educators and client advocates ensuring that equity release becomes part of a holistic retirement strategy, not a transactional afterthought.
- Digital infrastructure: Elevating advice and delivery
Lastly, technology is inevitably reshaping how equity release is advised, underwritten, and serviced in the UK. From real-time case tracking for brokers to automated affordability assessments, digital tools have dramatically improved efficiency and customer experience.
For markets looking to scale responsibly, this is a key lesson. Investing in digital infrastructure doesn’t just streamline operations, it also give advisers better data and enables more tailored, faster advice delivery. Digital fluency is a competitive advantage, not a nice to have.
Setting the standard
The UK has quietly set the gold standard for equity release, showing that with clear standards, aligned regulation, and a focus on customer needs, it can be a powerful tool for financial wellbeing in later life. As global interest accelerates, those who embrace these best practices have the chance to lead the next wave of responsible innovation. Now is the time for international advisers, providers, and regulators to step up and help shape a future for equity release built on trust, flexibility, and collaboration.
